Awqaf Sulaiman Al-Rajhi pays special attention to the modern concept of governance, in order to manage the Awqaf and its subsidiaries’ business. The governance rules and regulations were reviewed by widely experienced and specialized consultants in the field of governance and internal auditing, with proven experience in several registered Saudi companies. The modern practices of internal auditing were also activated in all sectors of the endowment affiliated companies. Audits are carried out by a specialized internal team and outsourced international companies that provide such services. In all the endowment affiliated bodies, the governance rules of Sulaiman Al-Rajhi Holding Company are considered one of the administrative and control bases to monitor the company business and relations with subsidiary companies. These rules focus on the Holding company’s rights, organizing the Board of Directors and committees’ works and identifying their responsibilities, in addition to the disclosure and transparency rules and regulating relations with stakeholders.
The Awqaf Auditing Committee is formed by a decision of the Supervisory Board, and it supervises the internal auditing of all levels, starting from the Supervisory Board and down to all affiliated bodies. A qualified and experienced administrative body, with the support of outsourced international companies, assists the Auditing Committee to carry out its entitled tasks. The main objective of the Awqaf’s Auditing Committee is assisting the Supervisory Board to fulfill its responsibilities, in regards to ensuring the efficiency and application of the Internal Control System. The committee also presents its recommendations to the Supervisory Board and the boards of the affiliated companies and subsidiaries to activate and develop the system, with the objective of achieving the Awqaf goals and preserving its assets.
Noteworthy, all the Awqaf affiliated bodies have their own boards; appointed by the Supervisory Board. The board formation –including the independent members – takes into consideration the diversity of experiences based on the needs and nature of each company or affiliated body. The Nomination Committee assists the Board of Trustees in this regard. This committee includes independent members and is assisted by an administrative body that seeks the recruitment of distinguished national calibers to join the endowment boards and committees.
The governance rules aim at increasing the efficiency and effectiveness of the performance of the companies and the Awqaf affiliated bodies through:
- Setting the responsibilities of the Boards of Directors and defining its role in preserving the rights of the Awqaf and serving their interests.
- Activating good governance practices and ensuring compliance with the relevant regulations and legislations of competent authorities.
- Adhering to Awqaf deeds.
- Activating the principles and practices of disclosure and transparency.
These rules are complementary to the Internal Auditing Regulations and Internal Auditing Charter, and include the following:
- Regulating the Board of Directors and Committees Works that include:
- General rules for board membership.
- Board membership policies and procedures.
- Board of Directors, Chairperson and board members’ tasks and responsibilities.
- The mechanism of organizing and holding meetings and voting on decisions.
- Board of Directors annual report.
- Organizing the works of the board committees.
- Disclosure and Transparency Rules:
- Rules relevant to disclosure policies.
- General disclosure guidelines.
- Disclosure procedures.
- Regulatory Rules for Relations with Stakeholders:
- Preserving the rights of the Holding Company.
- Professional attitude rules for managers and employees.
- Regulating the Board of Directors relations with the company, in terms of abstaining from offering loans, disclosure, and refraining from taking part in any competitive business.